The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-11-08
THE GAS TRUST BOOM.
Many More Subscriptions to Stock Receil ed
Yesterday-A Law Question Raised.

The Consumer Gas Trust Company's affairs
were actively pushed, yesterday, with very
substantial results. No means of estimating
the actual amount raised be had until
tomorrow, when the directors hope to have COM
plete details of the work done by canvassers at
their command. There is doubt but that a
large amount will be shown as the reports that
have come to Colonel Lilly and others of the
directors are very encouraging. Ward meet
ngs will be continued. and tonight the manu-
features will make renewed effort in increasing
their subscriptions at a meeting to be held at the
Board of Trade rooms 1t is hoped that every
manufacturer will come prepared to subscribe
literally to the stock. C. F. Schmidt for his
brewery firm has raised his Subscription from So
900 to 80 900. and at yesterdays meeting of the
Board of Trade General Foster announced that
when the amount reached $3.50. 600, South
Meridian-street merchant was ready to subscribe
the balance Great confidence is expressed that
all of the capital stock will be taken by the end of
the week. If that is the case, gentleman inter
ested in the movement says it will not be sixty
days before the trust has natural gas in the
city.
While no question is raised as to the ability
and sincerity of the representative lawyers who
gave an opinion the legality of the trust,
decision which, it is said, bears directly the
matter was recently delivered in Pittsburg
court. It has caused considerable Office discus
sion among the lawyers of the city as TO its APP
plcability in this instance. All do not agree on
that point, but the details OF the trust to which
the decision related are so nearly like those
der which the Consumers Gas Trust IS to OPP
crate that Its significance is generally admitted.
The decision is given at length in the Rail way
and Corporation Law Reporter of recent date,
ard sets forth facts pertaining to the organiza-
lion of the Pttsburg e Lake Erie railroad in
1877 w. Fl. Vanderbilt subscribed 1900
shares of stock, and at the time he and othsr
stockholders who controlled the majority of
shares made an agreement BY which their stock
was to be placed irrevocably il the name of trus-
tees perpetually, who were to have the power to
vote 1t unit in electing directors, besides
of the company. The given GER
tifcates showing that the shares had been placed
with the trustees. On the death of VIM. II.
Vanderbilt his certificates went to his son Cor
nelius who, at the annual meeting of the trus-
tees in January last. demanded the right to per-
sonafly vote the stock he owned This was de-
MED him, and the trustees voted the stock as
they had been doing since the agreement was
made. Cornelius Vanderbilt then brought suit
against James /. Bennett and the other trustees
to have the trust declared void.
In its decision the court held that the agree
ment by which the trust established was q
nudity, as any contract BY which the owEer or
corporate stock deprives himself of the rights
which accrue from such ownership is void Such
an agreement, 1t WAS held. is pernicions and
calculated to concentrate in the hands of few
shareholders the power of selecting directors
and managing the affairs of the corporation.
But, said the court if the agreement is not
void IL amounts to an irrevocable power of at
rorney to the trustees to vote and control the
stock, and such g power of attorney cannot be
made. The stakeholder has the power to revoke
it at any time. and II he did not death would
work revocation of such an arrangement
Stockholders cannot barter or give away their
right to control their stock, because ownership
imposes a duty to exercise a control over it in
the interest of the corporation.
II is among the possibilities that by the time
the Indianapolis company reaches the city limits
with it's pipe line that the naturai-gas ordinance
will be SO amended to satisfy every body
without interfering with the schedule of prices
If that is done it is not expecting much to
see natural used in the city proper before
che first Of February, aside from the amount